Logo of Phnom Penh Post newspaper Phnom Penh Post - Palm oil plan for loss

Palm oil plan for loss

Palm oil plan for loss

110527_08
Workers unload palm oil fruit from a truck into a processing plant in the north Sumatra province of Serdang Begadai this week. Reuters

MONG Reththy Group expects to operate its palm oil plantations at a loss this year, although they will generate revenues of US$20 million, according to owner Mong Reththy.

The firm has continued to increase the size of its plantations, anticipating producing 20,000 tonnes of refined palm oil this year, from 15,000 tonnes last year. Larger plantations will make the enterprise more profitable, he said.

“Output of oil has increased because of an expansion in plantations last year,” he said, adding the company’s palm oil revenues this year were expected to be some $2 million below break-even.

The firm’s current plantations in Preah Sihanouk province cover an estimated 10,000 hectares. Mong Reththy Group currently exports palm oil to buyers in India and the European Union at $1,100 per tonne, about the same as it achieved last year.

Ministry of Agriculture, Forestry and Fishery Secretary of State Chan Tong Yves said the palm oil plantation ought to become profitable as the area under plantation increases each year, in response to growing international demand.

“The development of this sector will provide more job opportunities and also uphold the Cambodian economy,” he said

Mong Reththy Group first began producing palm oil in Cambodia in 1996.

In March, Bursa Malaysia-listed Golden Land Bhd said it aimed to obtain two concessions for palm oil in Koh Kong province.

Meanwhile, palm oil climbed to the highest level in more than six week yesterday, on concerns that stormy weather in the US may further delay the planting of soybeans, and as importers stepped up purchases of the tropical cooking oil.

The August-delivery contract gained as much as 0.6 percent to 3,438 ringgit (US$1,130) per tonne on the Malaysia Derivatives Exchange, the highest level since April 11, and ended the morning session at 3,433 ringgit. ADDITIONAL REPORTING BLOOMBERG

MOST VIEWED

  • Locations shut, dozens more Covid-19 positive

    The Ministry of Health has closed 23 locations in connection with the February 20 community transmission of Covid-19 and summoned for testing anyone who had direct contact with affected people and places. The number of discovered related infections has risen to 76, including 39 women. In a press release,

  • Kingdom's Covid cluster cases jump to 194

    The Ministry of Health on February 25 confirmed 65 new cases of Covid-19, with 58 linked to the February 20 community transmission. The latest cluster cases include nine Vietnamese nationals, five Cambodians, one each from Korea, Singapore and Japan, with the rest being Chinese. This brings the total number

  • Cambodia's Covid cluster cases rise to 137

    The Ministry of Health on February 24 recorded 40 more cases of Covid-19, with 38 linked to the February 20 community transmission. Of the 40, two are imported cases involving Chinese passengers. The 38 include two Vietnamese nationals and one Cambodian, with the rest being Chinese. This brings the total cases

  • Covid cluster raises alarm, health bodies urge vigilance

    The Ministry of Health and the World Health Organisation (WHO) in Cambodia have expressed great concern over the February 20 cluster transmission of Covid-19 in the community. Both entities appealed for vigilance and cooperation in curbing further spread of the virus. Ministry spokeswoman Or Vandine said

  • PM confirms third Covid-19 community transmission

    Prime Minister Hun Sen on February 20 announced the Kingdom's third outbreak of Covid-19 community transmission after 32 people tested positive in just over 10 hours. Addressing the public from his residence after an emergency meeting, Hun Sen said: "I dub it February 20 Community Event, in which 32 cases

  • Cambodia to make auto-rickshaws

    Locally-assembled electric auto-rickshaws could hit the Cambodian market as soon as early in May after the Council for the Development of Cambodia (CDC) gave the greenlight to an investment project at the weekend. According to a CDC press release, it will issue a final registration